Are you wondering whether you’ll need to pay customs duties or other taxes on goods or products for personal use that you import into Italy or another EU country from a non-EU country? If so, this article is for you.
Exemptions from customs duties, VAT, and excise taxes on goods imported into Italy or other EU countries for personal use are primarily governed by Directive 2007/74/EC and Regulation 1186/2008, which are European laws. The general rules and exceptions for the importation of goods vary depending on the nature of the goods, the circumstances of importation, and their economic value.
In this informational content, (a) we summarize the general criteria for tax exemptions on the importation of personal goods, (b) delve into the necessary documents to prove the transfer of habitual residence to customs authorities, and (c) provide guidance on the economic and quantitative limits applicable to certain customs exemptions.
Do I have to pay customs duties, excise duties, or vat on the content of my personal luggage when traveling from outside to within the European Union?
1.1 General Rule: Goods contained in personal luggage are exempt from VAT, customs duties, and any excise duties under the following conditions (Articles 4 et seq., Directive 2007/74/EC; Article 41 Regulation 1186/2008):
- a) The goods must be intended for personal use, and their importation must be occasional: they must not be imported for commercial purposes (Article 6, Directive 2007/74/EC).
- b) The luggage must be “accompanied luggage” with the traveller at the time of departure (Article 5, Directive 2007/74/EC).
1.2 Exceptions: In deviation from the general rule in point 1.1:
- a) If the goods are consumables (e.g., beverages, perfumes, food), they can be imported tax-free provided their value does not exceed (Article 7, Directive 2007/74/EC):
– €430 per person, if travelling by air or sea;
– €300 per person, if travelling by other means (e.g., train or car).
- b) If the goods are consumables in the category of cigarettes, cigars, tobacco, alcoholic beverages, or fuel, they can be imported tax-free within specific quantitative limits (Art 8–12, Directive 2007/74/EC; Article 41, Regulation 1186/2008). Each EU country defines the exact VAT and duty exemption limits within a range set by EU legislation.
Do I have to pay customs duties on goods brought with me when relocating or moving my residence from outside to within the European Union?
2.1 General Rule: Personal use goods imported into the EU by individuals transferring their habitual residence to the EU territory are exempt from duties under the following conditions (Article 3, Regulation 1186/2008):
a) The goods must be non-consumable (e.g., clothes, toothbrush, alarm clock) and have been used in the previous residence, with the intention of continuing the same use in the destination country (Article 4, Regulation 1186/2008).
b) The individual must transfer their habitual residence into the EU after having resided outside the EU for at least 12 months (e.g., a UK citizen who has always lived in England and is permanently relocating to Italy) (Article 5, Regulation 1186/2008).
c) The goods must be transported and declared for personal use at the border within 12 months of establishing habitual residence in the EU (Article 7, Regulation 1186/2008).
2.2 Exceptions: In deviation from the general rule in point 2.1:
– Cigarettes, cigars, tobacco, and alcoholic beverages are in any case subject to the rules outlined in point 1.2(b).
– Non-portable professional materials or tools are not covered by the exemption and are therefore subject to duties. (e.g., laptops or other work-related items or tools that are easily portable do not fall under the exception and are therefore exempt from duties).
2.3 How can I prove that I am transferring my habitual residence to the EU?
When clearing goods through customs as part of an international shipment, individuals are generally required to declare their habitual residence and provide appropriate documentation.
For example, if moving to Italy as a non-EU citizen, one would typically need to present (a) a national visa to prove authorization to reside in Italy; and b) a rental or purchase deed for the home they will permanently occupy, or other suitable documentation proving the availability of stable lodging in Italy.
Do I have to pay customs duties on goods shipped by third parties from outside to within the European Union?
3.1 General Rule: Goods sent to me by third parties (e.g., friends or relatives) are exempt from duties if their total value does not exceed €150 (Article 23, Regulation 1186/2008).
3.2 Exceptions: This exemption, however, does not apply (Article 23, Regulation 1186/2008):
– to alcoholic beverages and tobacco products, for which the rules outlined in point 1.2(b) apply.
– to perfumes and toilet water.
Disclaimer
The information herein contained is of a general nature and serves explanatory and educational purposes. It should not be interpreted as legal advice on a specific case, which may be subject to different or more specific rules and regulations not addressed in this article.
Sources
Council Directive 2007/74/EC of 20 December 2007, concerning VAT exemptions.
Council Regulation (EC) No. 1186/2008 of 16 November 2008, concerning customs duty exemptions.
For more information or an analysis of your specific case, do not hesitate to book a consultation with us.
